U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark  One)

    [X]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
         SECURITIES  EXCHANGE  ACT  OF  1934

                  For  the  quarterly  period  ended  JUNE  30,  2002

    [ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
         SECURITIES  EXCHANGE  ACT  OF  1934

         For  the  transition  period  from  _____________  to  ______________.

                         Commission File Number 33-43423

                               NUWAY ENERGY, INC.
                          ----------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

              DELAWARE                                       65-0159115
     ---------------------------------                 ---------------------
        (State or other jurisdiction                        (IRS Employer
     of incorporation or organization)                   Identification No.)

                          19100 Von Karman Ave, Ste 450
                                Irvine, CA 92612
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (949) 553-8002
                           ---------------------------
                           (Issuer's telephone number)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject  to  such  filing  requirements  for  the  past  90  days.

        Yes  [X]                No  [  ]


     Number  of  shares  outstanding  of  each of the issuer's classes of common
equity,  as  of  June  30,  2002: 8,431,353 shares of common stock, $0.00067 par
value  per  share.

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                                    CONTENTS
                                    --------

Accountant's  Review  Report                                       1

Consolidated  Balance  Sheets  as  of  June  30,  2002
  and  December  31,  2001                                         2

Consolidated  Statements  of  Changes  in  Stockholders'
  Equity  for  the  six  months  ended  June  30,  2002
  and  the  year  Ended  December  31,  2001                       3

Consolidated  Statements  of  Operations  for  the  three  and
  six  months  Ended  June  30,  2002  and  2001                   4

Consolidated  Statements  of  Cash  Flows  for  the  six  months
   Ended  June  30,  2002  and  2001                               5

Notes  to  Consolidated  Financial  Statements  as  of
  June  30,  2002 and  December  31,  2001                          6-21


<PAGE>

                           ACCOUNTANTS' REVIEW REPORT
                           --------------------------

To  the  Board  of  Directors  of:
  NuWay  Energy,  Inc.  and  Subsidiaries


We  have  reviewed the accompanying consolidated balance sheets of NuWay Energy,
Inc.  and  Subsidiaries  as  of  June  30,  2002,  and  the related consolidated
statements  of operations, changes in stockholders equity and cash flows for the
six months ended June 30, 2002, in accordance with the Statements for Accounting
and  Review  Services  issued  by  the  American  Institute  of Certified Public
Accountants.  All  information  included  in  these  financial statements is the
representation  of  the  management  of  NuWay  Energy,  Inc.

A  review  consists principally of inquiries of company personnel and analytical
procedures applied to financial data.  It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which  is  the expression of an opinion regarding the financial statements taken
as  a  whole.  Accordingly,  we  do  not  express  such  an  opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to  the  accompanying  financial statements in order for them to be in
conformity  with  generally  accepted  accounting  principles.

As  discussed  in  Note  11 certain conditions indicates that the company may be
unable to continue as a going concern.  The accompanying financial statements do
not  include any adjustments to the financial statements that might be necessary
should  the  company  be  unable  to  continue  as  a  going  concern.

The  balance sheet for the year ended December 31, 2001 was audited by us and we
expressed  an  opinion on it that was qualified as to the ability of the company
to  continue as a going concern, in our report dated April 10, 2002, but we have
not  performed  any  auditing  procedures  since  that  date.

Shubitz,  Rosenbloom  &  Co.,  P.A.




Miami,  Florida
August  9,  2002

<PAGE>

                      NUWAY ENERGY, INC. AND SUBSIDIARIES
                      -----------------------------------
                          CONSOLIDATED BALANCE SHEETS
                          -----------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                -------------------------------------------------

                                     ASSETS
                                     ------

<TABLE>
<CAPTION>

                                                     June 30,      December 31,
                                                       2002           2001
                                                 ---------------  --------------
CURRENT ASSETS
<S>                                                    <C>              <C>
  Cash and Cash Equivalents                              $9,725        $440,827
  Accounts Receivable, Net of
   $25,000 of Allowance for Doubtful Accounts           201,322         234,054
  Inventory                                             448,378         475,291
  Notes receivable Officers and Affiliates,
    Current Portion                                      55,623               -
  Prepaid Expenses and Other Current Assets              52,950         156,958
  Subscriptions Receivable                              250,000               -
                                                 ---------------  --------------

      Total Current Assets                            1,017,998       1,307,130
                                                 ---------------  --------------


PROPERTY AND EQUIPMENT - NET                          2,577,833       2,360,135
                                                 ---------------  --------------

OTHER ASSETS
  Accounts Receivable Long-Term, Net of Allowance
    For Doubtful Accounts of $175,000 in 2002 and
   $150,000 in 2001                                     408,000         450,000
  Deposits                                               45,093          26,693
  Notes Receivable - Officers and Affiliates
    Net of Current Portion                               40,000         440,000
  Other Assets                                           16,253           6,374
                                                 ---------------  --------------

           Total Other Assets                           509,346         923,067
                                                 ---------------  --------------


TOTAL ASSETS                                        $4,105,177       $4,590,332
                                                 ===============  ==============
                 LIABILITIES  AND  STOCKHOLDERS'  EQUITY
                ---------------------------------------

CURRENT  LIABILITIES

Accounts Payable and Accrued Expenses                 $834,782        $985,776
  Debentures Payable                                   150,000       2,400,004
                                                 ---------------  --------------

        Total Current Liabilities                      984,782       3,385,780
                                                 ---------------  --------------

COMMITMENTS AND CONTINGENCIES                                -               -
                                                 ---------------  --------------

          Total Liabilities                           $984,782       3,385,780
                                                 ---------------  --------------
STOCKHOLDERS' EQUITY
  Common Stock, $.00067 Par Value 15,000,000
    Shares Authorized, 8,431,353 Shares Issued
    8,386,453 Shares Outstanding and 44,900 Shares
    held as Treasury Stock                               5,648           3,402
  Additional Paid-In Capital                        16,707,328      15,137,225
  Accumulated Other Comprehensive Income (Loss)       (546,183)       (544,539)
  Retained Earnings (Deficit)                      (12,919,394)    (13,264,532)
  Treasury Stock, at cost                             (127,004)       (127,004)
                                                 ---------------  --------------

          Total Stockholders' Equity                 3,120,395        1,204,552
                                                 ---------------  --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $4,105,177      $4,590,332
                                                 ===============  ==============

</TABLE>

       Read accountants' review report and notes to financial statements.
<PAGE>

<TABLE>
<CAPTION>


NUWAY  ENERGY,  INC.  AND  SUBSIDIARIES
---------------------------------------
                      CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                      ----------------------------------------------------------
                                 FOR THE YEAR ENDED DECEMBER 31, 2001
                                 ------------------------------------
                               AND FOR THE SIX MONTHS ENDED JUNE 30, 2002
                              -------------------------------------------


                    Common  Stock
                    -------------                    Accumulated
                      Number      Par     Additional   Other        Retained             Comprehensive
                        of       Value    Paid-In   Comprehensive   Earnings   Treasury     Income
                      Shares    $.00067   Capital   Income (Loss)   (Deficit)   Stock       (Loss)
                   -----------  ------- ---------- --------------  ---------- ----------- ------------
<S>                   <C>         <C>        <C>        <C>            <C>       <C>           <C>
 BALANCE JANUARY 1,
  2001                4,225,000 $2,831 $13,796,612 ($560,326)    ($6,612,099)  $5,235  $-

 ADJUSTMENT FOR FOREIGN
  CURRENCY TRANSACTIONS       -       -           -     15,787           -            -        15,787

 STOCK ISSUED FOR
  SERVICES              187,500     126     405,524         -            -            -            -

 REPRICING ON VARIABLE
  OPTION PLAN                -       -   (  230,460)        -            -            -            -

TREASURY STOCK               -       -           -          -            -         121,769         -

CONVERSION OF
  DEBENTURES            666,283     446   1,165,549         -            -            -            -

NET (LOSS) FOR THE
  YEAR ENDED
  DECEMBER 31, 2001         -        -           -          -    ( 6,652,433)        -     (6,652,433)
                   -----------  ------- ---------- --------------  ---------- ----------- ------------

BALANCE DECEMBER 31,  5,078,783   3,403  15,137,225   (544,539)   (13,264,532)     127,004
  2001

COMPREHENSIVE (LOSS)
  FOR THE YEAR
  ENDED DECEMBER 31,
  2001                                                                                    $(6,636,646)
                                                                                          =============

STOCK ISSUED FOR
  SERVICES              350,000     235     349,265         -            -            -           -

CONVERSION OF
   DEBENTURES         1,332,570     893   2,331,705         -            -            -           -

CANCELLATION OF
  WARRANTS                -          -   (1,659,750)        -       1,659,750         -           -

ADDITIONAL SUBSCRIPTION
  OF STOCK - SHOWN AS
  STOCK SUBSCRIPTION
  RECEIVABLE          1,000,000     670     249,330         -            -            -           -

STOCK ISSUED FOR
  SOFTWARE              670,000     447     299,553         -            -            -           -

ADJUSTMENT FOR FOREIGN
  CURRENCY TRANSACTIONS   -          -           -       1,644                                 (1,644)

NET (LOSS) FOR THE SIX
  MONTHS ENDED JUNE 30,
  2002                    -          -          -           -      ( 1,314,612)       -    (1,314,612)
                   -----------  ------- ---------- --------------  ------------ ----------- ------------


BALANCE JUNE 30,
  2002               8,431,353  $5,648 $16,707,328   ($546,183)   $(12,919,394)  $127,004
                   ===========  ====== =========== =============== ============ ===========

COMPREHENSIVE INCOME
  (LOSS) FOR THE SIX
  MONTHS ENDED JUNE 30,
  2002                                                                                    $(1,316,256)
                                                                                          ==============
</TABLE>

       Read accountants' review report and notes to financial statements.
<PAGE>

<TABLE>
<CAPTION>


                      NUWAY ENERGY, INC. AND SUBSIDIARIES
                    ---------------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------

                                      Three  Months  Ended    Six  Months  Ended
                                      --------------------    ------------------
                                           June  30,             June  30,
                                           --------              ---------
                                    2002           2001      2002           2001
                                  ------------ ----------- ------------ ------------
<S>                                  <C>           <C>        <C>            <C>
Revenue
-------
   Rental Income                      $87,712    $117,383     $183,340     $265,718
   Sales of Cigars                     25,103      37,859       45,908       71,775
   Oil Sales                           70,740           -      214,562            -
                                  ------------ ----------- ------------ ------------

       Total Revenues                 183,555     155,242      443,810      337,493
                                  ------------ ----------- ------------ ------------

Cost and Expenses
-------------------

 Selling, General & Administration    642,903     825,095    1,074,903    1,344,146
 Depreciation, Depletion and
  Amortization                         98,498      34,239      233,674       50,869
 Cost of Cigar Sales                   14,614      21,932       26,914       43,316
 Expenses Associated With
  Stock Issued for Services            49,500           -      349,500           -
 Oil and Gas Lease Operating Cost      41,778           -       70,736           -
 Site Restoration Costs                 3,897           -       10,169           -
                                  ------------ ----------- ------------ ------------
 Impairment Charges                        -      152,652            -     347,071
                                  ------------ ----------- ------------ ------------

       Total Cost and Expenses       851,190    1,033,918    1,765,896    1,785,402
                                  ------------ ----------- ------------ ------------

Operating Income (Loss)             (667,635)   (878,676)   (1,322,086)  (1,447,909)
                                  ------------ ----------- ------------ ------------

Other Income (Expenses)
-----------------------

   Interest Income                       821      45,266         7,474      101,777
                                  ------------ ----------- ------------ ------------

       Net Other Income (Expenses)       821      45,266         7,474      101,777
                                  ------------ ----------- ------------ ------------

Income (Loss) Before Income Taxes  ( 666,814)   (833,410)   (1,314,612)  (1,346,132)

Income Taxes (Provision) Benefit           -          -              -            -
                                  ------------ ----------- ------------ ------------

Net Income (Loss)                  $(666,814)  $(833,410)  $(1,312,612)  $(1,346,132)
                                  ============ =========== ============= ============

Earnings (Loss) Per Common Share
-----------------------------------
  and Common Share Equivalent Basic
  ---------------------------------
   and Fully Diluted
   ------------------

 Common Share Equivalent
   Outstanding                      6,904,644   4,221,600   6,156,073     4,221,600
                                  ============ =========== ============= ============
       Net Income (Loss)
         per share                $      (.10) $     (.20) $    (.21)    $    (.32)
                                  ============ =========== ============= ============
</TABLE>

       Read accountants' review report and notes to financial statements.

<PAGE>


                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                        -------------------------------------
                   FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
                   -----------------------------------------------
<TABLE>
<CAPTION>

                                                                                                     2002           2001
                                                                                              --------------   ----------------
<S>                                                                                                   <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income (Loss)                                                                           $ ( 1,314,612)     ($1,346,132)
  Adjustments to Reconcile Net Income
   to Net Cash Provided by Operating Activities:
     Depreciation, Depletion and Amortization                                                      233,674            50,869
     Issuance of Stock for Services & Interest                                                     432,094                 -
     Asset Impairment Charges                                                                            -           247,071
     (Gain) Loss on Sale of Asset                                                                        -            23,571
     Amortization of Deferred Debt Issuance Costs                                                        -            32,250

    Changes in Assets - (Increase) Decrease:
     Accounts Receivable                                                                            74,732            95,083
     Prepaid Expenses and Other Current Assets                                                     104,008            38,206
     Inventory of Cigars                                                                            26,913             1,463
    Changes in Liabilities - Increase (Decrease):
    Accounts Payable and Accrued Expenses                                                         (150,993)          332,896
                                                                                              --------------   ----------------
    Net Cash Provided by (Used In) Operating
      Activities                                                                                  (594,184)         (524,723)
                                                                                              --------------   ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds on Sale of Fixed Assets                                                                  22,475           188,351
  Fixed Assets Increase and Other                                                                 (173,847)           11,803
  Other Assets                                                                                     (28,279)          (42,243)
                                                                                              --------------   ----------------
    Net Cash Provided By (Used In)Investing
    Activities                                                                                    (179,651)          157,911
                                                                                              --------------   ----------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Reduction of Stockholder loans                                                                   344,377                 -
                                                                                              --------------   ----------------
    Net Cash (Used In) Financing Activities                                                        344,377                 -
                                                                                              --------------   ----------------
Effect of Exchange Rate Changes on Cash and
  Cash Equivalents                                                                                  (1,644)               89
                                                                                              --------------   ----------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                              (431,102)         (366,723)

CASH AND CASH EQUIVALENTS - BEGINNING                                                              440,827         4,422,715
                                                                                              --------------   ----------------

CASH AND CASH EQUIVALENTS - ENDING                                                                  $9,725      $  4,055,992
                                                                                              ==============   ================

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
----------------------------------------------------

Cash Paid During the Period for:
  Interest                                                                                     $     2,923      $    4,696
                                                                                              ==============   ================
  Income Taxes, Foreign                                                                        $         -      $        -
                                                                                              ==============   ================
Conversion of Debentures to Capital                                                            $ 2,250,004      $        -
                                                                                              ==============   ================
Issuance of Stock for Capitalized
  Software Costs                                                                               $   300,000      $        -
                                                                                              ==============   ================

</TABLE>
        Read accountants' review report and notes to financial statement.

<PAGE>



        Read accountants' review report and notes to financial statement.
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  1.     Summary  of  Significant  Accounting  Policies
--------     ----------------------------------------------


A     Business  and  Organization
      ---------------------------

NuWay  Energy  Inc.  (formerly  Latin  American  Casinos,  Inc.)  is  a Delaware
corporation  incorporated on September 19, 1991. In 1994, the Company entered in
the  gaming  and  casino  business,  primarily  in Peru and other Latin American
countries  renting  casino  type  slot  machines.

In 1994, the Company formed a Peruvian subsidiary; in 1995, the Company formed a
Colombian  subsidiary  and in 1997, the Company formed a subsidiary in Nicaragua
that  are  in the gaming and casino business in Latin America (See Note 9C). The
operations  include  the renting of casino slot machines as well as other gaming
equipment  to  casino  operators.  The  Company had originally acquired in total
approximately  8,000  slot machines and related parts. It had been the Company's
policy  to  capitalize all cost necessary to place the equipment on rental which
included  transportation, duty and refurbishing costs. In year 2001, as a result
of  deteriorating  market  conditions,  obsolescence  of the slot machines and a
mandate  by  the  Peruvian  Government,  a valuation of all gaming equipment was
performed  and  as  a result as further discussed in note 2, an asset impairment
charge  was  recorded.

In  September  1997,  the  Company incorporated World's Best Rated Cigar Company
(World) as a wholly-owned subsidiary of NuWay Energy, Inc. to distribute quality
cigars.  Is was originally intended that the Company would market premium cigars
at  "off  price",  and  would  acquire  quality  cigars  from six South American
producers  and  market  them  through  large  retail  chains,  initially  on  a
consignment  basis.  The  cigar  operations  have  been  slower  than originally
anticipated  and as at December 31, 2001, the Company had expended approximately
$1,186,000  in  regard  to  the  cigar  operations.  Such expenditures have been
included  in  the  accompanying  consolidated  financial  statements as follows:

               Cash  and  cash  Equivalents                     $        -
               Accounts  Receivable                                  8,000
               Prepaid  and  Other  Current  Assets                 24,000
               Inventory                                           448,000
               Fixed  Assets,  net  of  Accumulated  Depreciation   32,000
               Other  Assets                                         3,000
               Aggregate  Accumulated  Deficit                     671,000
                                                                -----------

                    Total  Investment                           $1,186,000
                                                                ===========

In  the  year  2001,the  Company  incorporated  NuWay  Resources, Inc., a Nevada
Corporation  and  NuWay  Resources  of  Canada,  Ltd.,  a Canadian Company, both
wholly-owned  subsidiaries  of NuWay Energy, Inc. These corporations were formed
to  pursue  opportunities  in  the  oil  and  gas exploration industry, with its
principal  activity  in  the exploration, development and product of oil and gas
properties  in  Western  Canada.

In  June,2002, the Company acquired medical software from Camden Holdings, Inc.,
an  affiliate,  for  670,000  shares  of  stock valued at approximately $.45 per
share.  That  affiliate subscribed to an additional 1,000,000 shares of stock at
$.25  per  share  which  at  June  30,  2002  has  not  been  paid.

                        Read accountants' review report.


<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  1.     Summary  of  Significant  Accounting  Policies  (Continue)
--------     ----------------------------------------------


B     Principles  of  Consolidation
      -----------------------------

The  accompanying  consolidated financial statements include the accounts of the
Company  and its wholly-owned subsidiaries, Latin American Casinos Del Peru S.A.
a  Peruvian  Corporation,  Latin  American Casinos of Colombia LTDA, a Colombian
Corporation,  World's  Best  Rated Cigars, Inc., Nuway Resources, Inc., a Nevada
Corporation  and  Nuway  Resource  of  Canada,  Ltd.,  a  Canadian  Company.

All  material  inter-company  transactions,  balance  and profits have been
eliminated.


C     Property  and  Equipment
      ------------------------

Property  and  Equipment  are  stated  at  cost.  Depreciation  is  provided  on
accelerated  and  straight-line  methods  over the estimated useful lives of the
respective  assets.  Maintenance and repairs are charged to expense as incurred;
major  renewals  and  betterment's  are  capitalized.  When items of property or
equipment are sold or retired, the related cost and accumulated depreciation are
removed  from  the  accounts  and any gain or loss is included in the results of
operations.  Whenever  there  is  a  change  in  events  or circumstances in the
business  economic  environment  or  a  significant  change  in  the  volume  of
operations,  the  Company  performs  an  impairment  analysis  by  comparing the
estimated  future  undiscounted  cash  flows  projected  to  be generated by the
assets, and if they are less than the asset carrying amount an impairment charge
is  recorded to reduce the assets to its estimated fair value.  In addition, the
Company  periodically  reviews the costs associated with undeveloped oil and gas
properties  and  mineral  rights  to  determine  whether  they  are likely to be
recovered,  when  such  costs  are  not  likely  to be recovered, such costs are
transferred  to  the  depletable  pool  of  oil  and  gas  cost.

D     Oil  and  Gas  Operations
      -------------------------

Substantially  all  of  the  Company's  exploration  and  development activities
related  to  oil  and  gas are conducted jointly with others and accordingly the
financial  statements  reflect only the Company's proportionate interest in such
activities.

The  net carrying cost of the Company's oil and gas properties in producing cost
centers  is  limited  to  an  estimated  recoverable  amount. This amount is the
aggregate  of  future  net  revenues  from  proved  reserves  and  the  costs of
undeveloped  properties,  net  of  impairment allowance, less future general and
administrative costs, financing costs and income taxes.  Future net revenues are
calculated  using  year  end  prices  that are not escalated or discounted.  For
Canadian,  GAAP  future  net  revenues  are undiscounted, whereas for U.S. GAAP,
future  net  revenues  are  discounted  at  10%.

                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------
Note  1          Summary  of  Significant  Accounting  Policies  (Continued)
-------          ----------------------------------------------

D     Oil  and  Gas  Operations  (Continued)
      -------------------------

In  conducting  its  ceiling  test  evaluation,  the  Company followed generally
accepted  accounting  standards  which  provided  for  a two-year exemption from
write-down  where  the purchase price of reserves had been determined on a basis
which provided a higher amount than the ceiling test value, and where the excess
was  not  considered  to  represent  a  permanent  impairment  in  the  ultimate
recoverable  amount.  If  the  two year exemption had not been used, the Company
would have taken a write-down of $1,054,000 based on prices at December 31, 2001
of  $11.32  per  bbl  of  heavy  oil  and  $3.30  per Mmbtu of gas.  The Company
qualified  for  the  exemption  in  connection  of  its acquisitions of resource
properties  in  August  and  September  of  2001.

Ceiling  test  calculations  are  based on the Company's reserve report prepared
annually,  on December 31, by McDaniel & Associates Consultants, LTD. and do not
reflect  current  prices which at June 30, 2002 were $17.13 per bbl of heavy oil
and  $1.98  per  mmbtu  for  gas.

Gains  or  losses  are not recognized upon disposition of oil and gas properties
unless crediting the proceeds against accumulated costs would result in a change
in  the  rate  of  depletion  of  20%  or  more.

Future  site restoration cost for working interest properties are being provided
on  a  unit  of  production  basis.  The  provision  is based on current cost of
complying  with  existing legislation and industry practice for site restoration
and  abandonment.  The  estimated  cost of abandoning carried interest wells are
not  included  in  future  site restoration cost. This cost would be paid by the
working  interest  partners  and  charged  to  the  carried  interest  account.


E     Revenue  Recognition
      --------------------

Revenue  is  recognized  monthly  on  the  rental  of  slot machines as the slot
machines  are  placed  in service. Typical rental arrangements for slot machines
are  for  one year or less in duration with constant rent income earned over the
life of the lease. As a general rule, the Company does not incur any significant
direct  cost  with  the inception of the lease. All leasing expense, payroll and
maintenance  of  equipment are charged to operations as incurred. Revenue on the
sale  of cigars are recorded when customer orders are shipped. The cost of cigar
sales  represents  the  direct  cost of the product sold. The Company recognizes
revenue  on  its  working and royalty interest properties from the production of
oil and gas in the period the oil and gas are sold, net of royalty payments due.

Revenue under carried interest agreements is recorded in the period when the net
proceeds  become  receivable  and  collection  is  reasonably assured. Under the
carried  interest  agreements,  the  Company records oil and gas revenues net of
operating  and  capital  cost incurred by the working interest participants. The
time  the  net  revenues  become receivable and collection is reasonably assured
depends on the terms and conditions of the relevant agreements and the practices
followed  by  the  operator.  As  a result, net revenues may lag the production.

                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  1          Summary  of  Significant  Accounting  Policies  (Continued)
-------          ----------------------------------------------


F     Statement  of  Cash  Flows
      --------------------------

For  purposes  of  this  statement, the Company considers all liquid investments
purchased  with  an  original  maturity  of  three  months  or  less  to be cash
equivalents.

G    Income  (Loss)  Per  Common  Share
      ----------------------------------

Basic  earnings  per  common share and common share equivalents were computed by
dividing  net  income  (loss) by the weighted average number of shares of common
stock  outstanding  during  the  period.  Fully  diluted  earnings per share was
calculated  based  on  the  assumption that the increase in the number of common
shares assumed outstanding on conversion of debentures and excise of options and
warrants  are  reduced  by  the  number  of common shares that are assumed to be
purchased  with  the  proceeds  from  the  exercise of the options and warrants.
During  2001, all warrants, stock options and underwriter's options (Notes 4, 5,
6)  were  anti-dilutive,  and excluded from the computation of basic and diluted
earning  (loss)  per  share.

In  the  future,  if  all  the  convertible  debt,  warrants,  stock options and
underwriting  options  were  exercised  or  converted, future earnings per share
could  be  diluted  by  2,708,214  additional  shares  as  follows:

                    Publicly  Traded  Options          1,725,000
                    Private  Warrants                    300,000
                    Investment  Banker  Warrants         225,000
                    Incentive  Stock  Options            372,500
                    Debentures                            85,714
                                                      -----------

                                                       2,708,214
                                                      ===========


H     Significant  Concentration  of  Credit  Risk
      --------------------------------------------

The Company has concentrated its credit risk for cash by maintaining deposits in
banks  located  within  the  same geographic region. The maximum loss that would
have  resulted  from  risk  totaled $11,000 and $238,000 as of June 30, 2002 and
December 31, 2001 for the excess of the deposit liabilities reported by the bank
over  the  amounts  that  would  have been covered by federal deposit insurance.

                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF June 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  1          Summary  of  Significant  Accounting  Policies  (Continued)
-------          ----------------------------------------------

I     Use  of  Estimates
      ------------------

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities,  the disclosure of
contingent  assets  and liabilities at the date of the financial statements, and
revenues  and  expenses  during the period reported. Actual results could differ
from  those  estimates.  Estimates  are  used  when accounting for uncollectible
accounts  receivable,  obsolescence,  equipment  depreciation  and amortization,
taxes,  among  others.


J     Foreign  Currency  Translation
     ------------------------------

For  most  international  operations, assets and liabilities are translated into
U.S.  dollars  at  year-end  exchange  rates,  and  revenues  and  expenses  are
translated  at  average  exchange  rates prevailing during the year. Translation
adjustments,  resulting  from  fluctuations  in exchange rates are recorded as a
separate  component  of  shareholders'  equity,  as  other  comprehensive income
(loss).


K     Inventories
       -----------

Inventory of cigars and related material are stated at the lower of average cost
or  market.  The Company has in excess of one year supply of cigar inventory but
believes  it  can  sell  the  entire  inventory  within  one  year.


L     Valuation  of  Company's  Stock  Options  and  Warrants
      -------------------------------------------------------

As permitted under the Statement of Financial Accounting Standards No. 123 (SFAS
No.  123), Accounting for Stock-Based Compensation, the Company accounts for its
stock-based  compensation  to  employees  in  accordance  with the provisions of
Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to
Employees.  As  such, compensation expense is recorded on the date of grant only
if the current market price of the underlying stock exceeded the exercise price.
Certain  pro-forma  net  income  and  EPS disclosures for employee stock options
grants are also included in the notes to the financial statements as if the fair
value  method as defined in SFAS No 123 had been applied. Transactions in equity
instruments  with  non-employees  for goods or services are accounted for by the
fair  value  method.

M     Advertising
      -----------

The Company expenses all advertising cost as incurred. Included in the statement
of operations is approximately $1,500 and $49,000 advertising expense charged to
operations  for  the  six  months  ended  June  30, 2002 and 2001, respectively.
Substantially  all  advertising  expenses  incurred  were  paid  with  barter
transactions  at  published  costs.

                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  2.     Property  and  Equipment
--------     ------------------------

          Property  and  Equipment  are  summarized  as  follows:
<TABLE>
<CAPTION>

                                             June 30,       December 31,
                                               2002             2001
                                          --------------- -----------------
<S>                                           <C>               <C>
    Software Costs (See Note 1  )           $  300,000      $        -
    Exploration and Development Equipment    1,028,868         933,624
    Oil & Gas Properties At Cost               787,954         752,067
    Land & Building (See Note 10)               35,000          35,000
    Rental Equipment(See Note 10)              974,867       1,039,008
    Furniture, Fixtures & Office Equipment     144,239         151,818
    Transportation Equipment                     9,502           2,862
                                          --------------- -----------------

                Total                        3,280,430       2,914,379

    Less:  Accumulated Depreciation            702,597         554,244
                                          --------------- ----------------

    Property and Equipment - Net           $ 2,577,833     $ 2,360,135
                                          =============== ================

    The estimated useful lives
     of property and equipment,
     is as follows:

      Rental Equipment                                    5-7 years
      Special Use Buildings                                10 years
      Commercial Buildings                                 30 years
      Furniture, Fixtures and Office Equipment            5-7 years
      Transportation Equipment                              5 years
</TABLE>

Depletion  is  provided  on cost accumulated in producing cost centers including
production  equipment  using  the unit of production method. For purposes of the
depletion  calculation,  gross  proved  oil  and  gas  reserves as determined by
outside  consultants  are  converted to a common unit of measure on the basis of
their  approximate  relative  energy  content.

Included  in  Rental  Equipment  is  approximately $70,000 of parts and supplies
purchased  or obtained from other machines previously disassembled for parts. In
year  2001,  as  a  result  of  market  conditions and obsolescence, the Company
reviewed  all  costs  associated  with  its  gaming  equipment  and  recorded an
impairment  charge  of  $2,789,000  on  gaming  equipment.

Rent  expense  for  the six months ended June 30, 2002 and 2001 were $62,000 and
$74,000,  respectively.

                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  3.     Notes  Receivable  -  Stockholders  and  Affiliates
--------     ---------------------------------------------------

In  October,  2001  the  Company  advanced  loans  to  two  companies controlled
respectively  by  Todd  Sanders (CEO) and William Bossung (COO) in the aggregate
amount  of  $400,000  which is due in October, 2006. Interest on these notes are
payable  quarterly  and  computed  at  the prime rate plus 1% (5.75% at June 30,
2002).  These  notes  have  been  reduced  to  $55,623  at June 30, 2002 and are
anticipated  to  be  repaid  by  year  end.  Accordingly  these  notes have been
classified  as  a  current  asset  in  the  accompanying  financial  statements.

In  June, 2001 the Company advanced $40,000 to another officer. This note is due
on  the  earlier  of the officer's termination or June, 2002 and is repayable as
reductions  of  severance  arrangements included in his employment contract (See
Note  9B).  Interest  is payable quarterly and calculated at the prime rate plus
1%. It is anticipated that the notes will be extended and has been classified as
a  non-current  asset  in  the  accompanying  financial  statement.

Note  4.     Warrants  and  Options  and  Stock  Issued  for  Services
--------     ---------------------------------------------------------

As  of  June  30, 2002, the Company has outstanding 1,725,000 five year publicly
traded  warrants  that  were  issued  as  part  of  the Company's initial public
offering  to  purchase  one  share  of the Company's common stock at an exercise
price  of  $3.00  by December 11, 2002. In December 2000, the board of directors
authorized  the  issuance  of  an  additional  3,300,000 private five year stock
warrants  to  acquire common stock at $1.75 per share. 1,500,000 of the issuance
of  the  private  warrants and 200,000 shares of restricted stock were issued to
executives  of  the  corporation.  Compensation  was recorded on the arrangement
equal  to  the  market  value  of  he  restricted stock, $350,000. The remaining
warrants,  1,800,000  were issued in connection with service rendered by several
individuals  and  entries  and were valued at $1,991,700 using the Black-Scholes
Options  pricing  model  assuming  a  5%  interest rate and high volatibility to
underlying  stock  prices.  The 1,500,000 warrants issued to the executives were
valued at the intrinsic value in accordance with APB 25 at $1,620,000. (See Note
6).  In year 2002, 3,000,000 of the 3,300,000 warrants issued in year 2000, were
cancelled  and approximately $1,660,000 of previously recorded expenses that was
recorded  in  year  2000  was  adjusted  against  retained  earnings.

In  year  2001,  the  Company issued or was committed to issue 187,500 shares of
stock  for  services.  Expenses  were  recorded based on the value of the stock,
which  ranged from $2.51 per share to $1.98 per share, for a total consideration
of  $405,524.  In January, 2002 the Company entered into a consulting engagement
with  Barnstable Energy, Inc for consulting services. The Company issued 200,000
shares  of common stock pursuant to this agreement and recorded compensation for
services  of  $300,000. In May, 2002, the Company issued 150,000 shares of stock
valued  at  $.33  per  share,  for  legal  services  rendered.

                        Read accountants' review report.
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  5.     Investment  Banker  Warrants
--------     ----------------------------

Effective  June  5,  1998,  the  Company contracted with an investment banker to
provide  on a non-exclusive basis to the Company assistance in possible mergers,
acquisitions  and  internal capital structuring. The duration of the contract is
for  five  years.  In  consideration for these services, Latin American Casinos,
Inc. granted warrants to purchase an aggregate of 225,000 shares of common stock
at  the  closing  bid price of $1.875 as of June 5, 1998, which can be exercised
through June 5, 2003. Effective February 8, 2000, the Board of Directors reduced
the  exercise  price  to $1.06, which was the closing price of the stock at that
date.  These  warrants  are  fully  vested.

Note  6.     Incentive  Stock  Option  Plan
--------     ------------------------------

On  June  13, 1994, the Board of Directors adopted the 1994 Stock Option Plan in
which  the aggregate number of shares for which options may be granted under the
Plan shall not exceed 1,000,000 shares. The term of each option shall not exceed
ten years from the date of granting (five years for options granted to employees
owning  more  than  10%  of  the  outstanding  shares of the voting stock of the
Company).  The  1991  plan  became  effective  on  September  30,  1991  and was
terminated  in  March, 1999. The 1994 plan became effective on June 13, 1994 and
will  terminate  in June, 2004, unless terminated earlier by action of the Board
of  Directors.  In December, 1995, the Company authorized the issuance under the
1994  Stock  Option  Plan  of  492,500 options at an exercise price of $2.50 per
share to various officers and employees. On March 6, 1997 the Company authorized
the  issuance  of an additional 415,000 options at an exercise price of $2.50 to
various  officers and employees. In June, 1999, the Company increased the shares
allocated  to  the  plan  to 1,500,000. Effective December 31, 1998, the Company
ratified  the  repricing  of  the  employee stock options to $1.00 per share and
simultaneously authorized the issuance of 85,000 options at an exercise price of
$1.00  per  share and canceled 10,000 options issued in 1995 at $2.50 per share.
Effective  February, 2000 the Company issued 35,000 options at an exercise price
of  $1.06  and  in  December,  2000 the Company issued 80,000 options at a $1.75
exercise  price.

                        Read accountants' review report.
<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  6.     Incentive  Stock  Option  Plan  (Continued)
--------     ------------------------------

          Incentive  Stock  Options  Outstanding
          --------------------------------------
<TABLE>
<CAPTION>
                                                       Amount           Price Per Share
                                              ------------------------  ---------------
<S>                                                 <C>                       <C>
    Options Outstanding at January 1, 2000           982,500                $1.00
    Additional Options Issued                         35,000                $1.06
    Additional Options Issued                         80,000                $1.75
    Options Lapsed                                   (75,000)               $1.00
    Options Exercised                               (650,000)               $1.00
                                              ------------------------
    Options Outstanding at December 31, 2001         372,500
      And June 30, 2002
                                              ========================
</TABLE>

          All outstanding warrants and non-qualified options and incentive stock
options  were  exercisable  at  June  30,  2002.

          The  following  table  shows  the  years in which all of the Company's
options  and  warrants  (as  discussed  in  Notes  4,  5  and  6)  will  expire:


                                                                      Weighted
                                                                      Average
                                          Range       Number of       Exercise
          Year  Ending  December  31   Low    High     Shares          Price
                                      ----- -------   --------        -------

          2002                     $  3.00  $  3.00      1,725,000      $3.00
          2002                        1.00     1.00        172,500       1.00
          2003                        1.00     1.00        310,000       1.00
          2004                           -        -              -          -
          Thereafter                  1.06     1.75        415,000       1.74
                                                         ---------

          Total                                          2,622,500
                                                         =========

No  options  were  granted  in  2001  and  2002

The  Company  adopted the provisions of SFAS No. 123, Accounting for Stock Based
Compensation,  effective for fiscal year 1997 for all issuances of stock options
to non-employees of the Company.  The Company will continue to apply APB Opinion
No.  25 (Opinion 25), Accounting for Stock Issued to Employees for all issuances
stock  options  to  its  employees.   In  June  1999,  the  Company  adopted the
Financial  Accounting  Standards  Board Interpretation Number 44, which requires
re-priced  options  be  re-measured  for expenses based on the quarter end stock
price.  Expenses  are  also  re-measured  upon  exercise  for  the  options.

                        Read accountants' review report.
<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                          AS OF JUNE 30, 2002 AND 2001
                          ----------------------------

Note  7.     Debentures
--------     ----------

In  December,  2000, the Company, through a private placement, issued $3,500,000
principle  amount  of  6% Convertible Debentures. These debentures were due June
13,  2001,  which  had  been subsequently extended to December 13, 2001, and are
Convertible  into  common  stock  at  an  exercise price of $1.75 per share. The
Company  incurred  approximately  $64,500  of  costs  in  regard to this private
placement  and  the  debt  issuance  costs  were  amortized over the life of the
debentures.  Included  as part of selling general and administration expenses in
the  statement  of  operations for the six months ended June 30, 2001 is $32,250
amortization  of  deferred debt issuance cost. The interest on the debentures is
payable  either  in  cash  or  in  additional  shares  of  common  stock, at the
discretion of the Company. The conversion price of the debentures was determined
by  the  approximate  market  value of the common stock at the date of issuance.

Prior  to  December  31,  2001,  approximately  $1,100,000  of debenture holders
converted  their  debentures into common stock for the value of their debentures
and  the accrued interest of $66,000. At December 31, 2001, included in accounts
payable  was  $144,000 of accrued interest on these debentures. Through June 30,
2002  an additional $2,250,000 of debentures holder's converted their debentures
into  Company  stock  for  the value of their debentures and accrued interest of
$132,000.  At  June  30, 2002, included in accounts payable is $9,000 of accrued
interest  on  the  remaining  debentures  payable.

Note  8.     Provision  of  Income  Taxes
--------     ----------------------------

As  of  June  30, 2002, the Company had available for income tax purposes unused
net  operating  loss  carry  forwards  which  may provide future tax benefits of
$11,981,000  expiring  through  the  year  2016. No valuation allowance has been
provided  for  unremitted  foreign  profits.  No provision had been provided for
deferred  taxes  in  the accompanying financial statements in that any amount of
tax  benefit  based  on  available  evidence  are  not  expected to be realized.

Note  9.     Commitments  and  Contingencies
--------     -------------------------------

A     Litigation
      ----------

The  Company is a defendant from time to time on claims and lawsuits arising out
of  the  normal  course  of  its  business, none of which are expected to have a
material  adverse  effect  on  its  business,  operations, financial position or
corporate  liquidity.

                        Read accountants' review report.
<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  9.     Commitments  and  Contingencies  (Continued)
--------     -------------------------------

B     Employment  Agreements
      ----------------------

In  January 1997, the Company entered into a five year employment agreement with
Lloyd  Lyons  which  provided  in  part  that  in  the event of either a merger,
consolidation, sale or conveyance of substantially all the assets of the Company
which results in the discharge of Mr. Lyons, he would be entitled to 200% of the
balance of payments remaining under the contract upon the death of Mr. Lyons the
Company  amended  its  employment  contract with the surviving widow and primary
beneficiary  of  the  Estate  of  Lloyd  Lyons, where-in the salary continuation
clause  included in his contract was replaced with a severance arrangement which
requires  the  Company  to  pay  the  spouse  $100,000  over  a  one year period
commencing  on  the  first  month following her termination, from her employment
with  the  Company  and upon her termination she is to receive 100,000 shares of
common  stock  pursuant to an amendment to her employment agreement. The amended
employment  agreement  obligated  the  Company  to  register  these  shares  and
reimburse  her  for  the  difference in the gross proceeds upon the sale of such
shares  and  $300,000,  regardless  of  the  time  she  holds  such shares. Upon
termination  of  the  employee  contract,  the  Company  will  record additional
compensation  at  the  greater  of  the market price of the Company stock or the
guaranteed  price  stipulated  in the contract. Effective October 29, 2001, Mrs.
Lyons  tendered  her  resignation  and  based  upon  the  terms of her contract,
severance  expenses  of  $350,000  had  been recorded in year 2001 with $308,000
included  in  accounts  payable  and  accrued  expenses  at  June  30, 2002. The
compensation  expense  recorded  in  September,  2001  was comprised of $100,000
payable  monthly  for  one  year  plus the value of 100,000 shares to be issued.

In  January, 2000, the Company entered into two additional employment contracts,
both  for  the  duration of two years and provides that the Company be obligated
for  an  aggregate  compensation  of  $115,000 in year 2000 and $126,500 in year
2001.  Effective August 2, 2000, both of these employment contracts were amended
to  reflect upon termination from employment, these individuals will be entitled
to  nine  months of compensation and will receive in the aggregate 35,000 shares
of  common  stock  which  the  Company  has  agreed  to reimburse the respective
employees  the  difference between the gross proceeds they receive upon sale and
$105,000,  regardless  of  the  term  the  employees  hold  such  shares.  Upon
termination  of  the  employee  contract,  the  Company  will  record additional
compensation  at  the  greater  of  the market price of the Company stock or the
guaranteed  price  stipulated  in  the  contract.

The  Company entered into two additional one-year employment agreements with the
Chief  Operating  Officer  and the Chief Executive Officer requiring the Company
issue  to  each  100,000  shares  of  stock individually and 750,000 warrants to
purchase  additional  common  stock  at $1.75 per shares, individually, in March
2002,  1,500,000  warrants  to  purchase  additional common stock were cancelled
(Note  4).  In  June,  2002,  the  Board  of Directors authorized the payment of
officers  compensation for each of the officers at $12,000 per month retroactive
to  October,  2001. Included in Selling, General and Administrative Expenses are
$216,000 of salaries in regard to this arrangement for the six months ended June
30,  2002.

                        Read accountants' review report.
<PAGE>

                        NUWAY ENERGY, INC. AND SUBSIDIARIES
                        -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  9.     Commitments  and  Contingencies  (Continued)
--------     -------------------------------

C     Foreign  Assets
      ---------------

The accompanying consolidated balance sheets for the period ended June 30, 2002,
includes  assets  relating  to the Company's slot machine operations in Peru and
Colombia  of  $733,000  and  $685,000 respectively. Although these countries are
considered  politically  and  economically  stable,  it  is  possible  that
unanticipated  events  in  foreign  countries  could  disrupt  the  company's
operations.  In that regard, the company was informed that in Peru an excise tax
has  been  instituted  effective  October  1,  1996,  on  the  leases  of gaming
equipment.  The  company  with  others  in  the  industry  negotiated  with  the
appropriate  governmental  agencies  and  have  had the excise tax significantly
curtailed

Revenue  from  rental  operations  is  entirely  earned  in  Columbia  and Peru.

The  assets  of  the  oil  and  gas  operations,  which  aggregate approximately
$1,455,000  are  entirely  in  Canada. All revenue from oil and gas is earned in
Canada.

Approximately  $300,000  of the Company's inventory of cigars is being stored in
South  America,  awaiting  instructions  for  delivery to the Miami distribution
facility.

D     Lease  Commitment
      -----------------

As  at  June  30, 2002, all operating leases for corporate facilities are either
short  term  leases  or have expired and are being continued on a month to month
basis.

E     Contractual  Commitment
      -----------------------

In  February,  2002,  the Company entered into an agreement with Avalon Capital,
Inc.  (AVA) whereby AVA will use its best efforts to find a merger candidate for
the Company.  If a merger is consummated within a year of introduction, AVA will
be  entitled  a  finders fee equal to 3% of the value of the aggregate number of
shares  outstanding  after  the  merger,  on  a  fully  diluted  basis.

Note  10     Impairment  Loss
--------     ----------------

In  2001,  the  Company recorded an impairment loss as a result of the
obsolescence  of  parts  used in the gaming equipment and reduction of values of
the  utility  of  the  gaming  equipment.

Note  11     Going  Concern
--------     --------------

The Company has accumulated net losses of $12,919,000 through June 30,
2002,  and  has  a history of deficiency of operating cash flows and losses from
operations.     These  factors create an uncertainty about the Company's ability
to  continue as a going concern.  Management of the Company is developing a plan
to  reduce  current  liabilities, reduce expenses, raise additional capital, and
considering  the  sale of certain oil well assets to generate sufficient cash to
sustain  operating  overhead.  The  financial  statements  do  not  include  any
adjustments  that  might  be necessary if the company is unable to continue as a
going  concern.
                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  12     Operating  Segments
--------     -------------------


                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  12     Operating  Segments
--------     -------------------
<TABLE>
<CAPTION>
                                    For  the  Six  Months  Ended  June  31,  2002
                              ---------------------------------------------------
                                      Cigar        Oil      Gaming
                           Total   Operations    & Gas     Equipment    Unallocated
                        ---------   ----------  ----------  -----------  -----------
<S>                        <C>          <C>        <C>          <C>           <C>
   Revenues              $443,810   $45,908       $214,562     $183,340   $       -
                        ---------   ----------  ----------  ------------ -----------
        Cost & Expenses
       -----------------
        Cost of Product
          Sold              26,914     26,914           -             -           -
        Direct Overhead
          Cost             442,419     65,920       98,484      278,015           -
        Allocated
          Overhead Cost    713,389     51,450      240,465      205,474     216,000
        Depreciation &
          Depletion        233,674      3,602      211,009       13,863       5,200
        Expenses Assoc.,
          With Options,
           Warrants, and
            Stock Issued
             For Services  349,500          -            -            -     349,500
                         ---------   ---------- ----------  ------------ -----------

        Total Cost and
       -----------------
           Expenses      1,765,896    147,886      549,958      497,652     570,700
          ---------      ---------   ---------- ----------  ------------ -----------

        Operating
       ------------
          Income(Loss) ($1,322,086) ($101,978)  ($ 335,396)  ($314,012)  ($570,700)
          ------------   ---------   ---------- ----------  ------------ -----------

        Total Assets    $3,855,000   $515,000   $1,455,000  $1,418,000   $  467,000
        ==============  ==========  =========== ==========  ============ =============

</TABLE>
                        Read accountants' review report.
<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  12     Operating  Segments  (Continued)
--------     -------------------
<TABLE>
<CAPTION>
                                      For  the  Six  Months  Ended  June  30,  2001
                                      ---------------------------------------------

                                      Cigar        Oil      Gaming
                          Total     Operations   &  Gas    Equipment   Unallocated
                        ---------- ----------- ----------- ---------- -------------
<S>                       <C>           <C>         <C>         <C>          <C>

        Revenues         $337,493      $71,775  $       -    $265,718  $         0
                        ---------- ----------- ----------- ---------- -------------
        Cost & Expenses
       ------------------
        Cost of Product
          Sold              43,316     43,316           0          0            0
        Direct Overhead
          Cost             577,374     81,085           0    496,289            0
        Allocated
          Overhead Cost    766,772    163,070           0    603,702            0
        Depreciation and
          Depletion         50,869      5,202           0     42,167        3,500
        Asset Impairment
          Charges          347,071          0           0    347,071            0
                        ---------- ----------- ----------- ---------- -------------
        Total Cost and
        ----------------
           Expenses      1,785,402    292,673            0  1,489,229        3,500
           ---------    ---------- ----------- ----------- ---------- -------------

        Operating
        ----------
          Income(Loss)($1,447,909)  ($220,898)        ($0)($1,223,511)     ($3,500)
                        ---------- ----------- ----------- ---------- -------------

        Total Assets   $9,267,000   $ 687,000     $     -  $4,467,000   $4,114,000
                       =========== =========== =========== =========== =============

</TABLE>
                        Read accountants' review report.

<PAGE>
                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  13     Oil  and  Gas  Producing  Activities
--------     ------------------------------------

The  following  information  includes  estimates  which are subject to rapid and
unanticipated  change.  The Company cautions that the discounted future net cash
flows  from proved oil and gas reserves are not an indication of the fair market
value  of  the  Company's  oil  and  gas properties or the future net cash flows
expected  to  be  generated  from the properties. The discounted future net cash
flows  do  not  include  the  fair  market  value  of exploratory properties and
probable  or  possible oil and gas reserves. Also, the estimates do not consider
the effect of future changes in oil and gas prices, development, sit restoration
and  production  costs, and possible changes in tax and royalty regulations. The
prescribed  discount  rate  of 10% may not appropriately reflect future interest
rates.

All  amounts  below,  except  for  cost,  acreage,  wells  drilled  and  present
activities,  relate  to  Canada.  McDaniel  &  Associates  Consultants  Ltd.,
Independent  consultants,  provided oil and gas reserve data and the information
relating  to  cash  flows.

Estimated  net  quantities  of  proved  oil  and gas reserves at are as follows:

          Proved  reserves:
                                          Oil        Gas
                                        (bbls)     (mcf)
                                      ----------     ---------

            June  30,  2002            122,500        70,700
                                      ----------     ---------


          Proved  developed  reserves

            June  30,  2002            122,500        70,700
                                      ----------     ---------


                        Results of Oil and Gas Operations
                        ---------------------------------

          Income:
         Oil  Sales                                 $ 214,562
                                                    ----------

          Cost  and  expenses:
         Lease  operating  cost                        70,736
         Depletion,  depreciation  amortization       211,009
         Site  restoration  costs                      10,169
                                                    ----------

                                                      291,917
                                                    ----------

          Net  loss  from  operations               ($ 77,352)
                                                    ==========

          Capitalized cost of oil and gas activities:
           Acquisition  costs                      $  787,982
           Exploration                                314,827
           Development                                634,041


                        Read accountants' review report.

<PAGE>

                       NUWAY ENERGY, INC. AND SUBSIDIARIES
                       -----------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
                    -----------------------------------------

Note  13     Oil  and  Gas  Producing  Activities  Continued
--------     ------------------------------------

         Standardized  measure  of  discounted  future  net  cash  flows
           relating  to  proved  oil  and  gas  reserve  quantities  during
           The  following  period:


          Future  cash  inflows                                       $1,631,000
          Future  development  and  production  cost                     921,000
                                                                      ----------


                                                                         710,000
          Future  income  tax expense*                                         -
                                                                      ----------


          Future  net  cash flows                                        710,000
          10%  annual discount                                          (53,000)
                                                                      ----------


          Standardized  measure  of  discounted
            future  net  cash flows                                   $  657,000
                                                                      ==========


*Reflects  total  tax  pools for the period to June 30, 2002 that may be used to
offset  oil  and  gas  income.  The  tax pools are comprised of carry forward of
exploration,  development and lease acquisition costs, under-appreciated capital
costs  and  earned  depletion  of  $1,559,000.

Current prices used in the above estimates were based upon selling prices at the
wellhead  at January 1, 2002 less the historical quality and price differentials
for  each  respective  field  as  follows:

          Oil  -  Hardisty  Heavy  ($CDN./bbl)(In U.S. $)               $ 11.831
          Gas  -  Alberta  average  @ Field gate $CDN./Mmbm) (In US$)   $  3.458

Current  cost  was based upon estimates made by consulting engineers at December
31,  2001.

<PAGE>

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND RESULTS OF
--------------------------------------------------------------------------------
OPERATION
---------

General
-------

     The  Company  entered the gaming and casino industry in Peru in 1994. Since
January  1995,  the Company has been engaged in the renting of slot machines and
other  gaming  equipment  to  licensed  gaming  establishments in various cities
through its wholly owned subsidiaries in South and Central America. In 1994, the
Company  formed its Peruvian subsidiary, and in late 1995 the Company formed its
Colombian  subsidiary.

     As  of  June  30,  2002,  the  Company had approximately 538 machines under
rental  contracts  in  Peru  and  Colombia.

     The  Company in this segment concentrates its efforts on the rental of used
five reel slot machines. These machines were purchased at a fraction of the cost
of  new  machines  and  are  refurbished  for  use in South and Central America.
Whereas  a  new  slot  machine  would cost approximately $10,000 plus additional
charges  for duty, the used slot machines cost approximately $700 each including
freight,  duty,  and  refurbishing  expenditures.

     In  September  1997,  the  Company  incorporated  World's  Best Rated Cigar
Company,  as  a  wholly  owned  subsidiary, to distribute premium cigars. It was
originally  intended  that  the  company  would  acquire quality cigars from six
manufacturers  and  market  them  at "off price" through large retail chains. In
February  2000,  the marketing strategy was modified to include selling directly
to  consumers  through  our web site, www.worldsbestrated.com, and our toll free
number.  Substantially  all  advertising  expense  incurred  is paid with barter
transactions.

     Beginning  in  July  2001  the  Company directed part of its efforts to the
exploration  for  and  the development of oil and gas properties in Canada.  The
Company's  exploration  and  development  activities  related to oil and gas are
conducted  jointly with others.  The Company purchased a 30% working interest in
the  Superb  area  of  Saskatchewan,  Canada  and  a 20% working interest in the
Altares  Gas  project  in  Northeast  British  Columbia.

Future  trends
--------------

     Over  the  next  four  quarters, we intend to shift our business focus away
from  the  gaming  equipment  and  cigar  industries,  and  toward  the  medical
technology  and healthcare services industries. The reason for this is the Board
of  Directors  believes  the healthcare sector represents a significant business
opportunity  for  Nuway,  and  current  management  has  the  experience to take
advantage  of  current  market  conditions  in this sector. Accordingly, we have
entered  into  two  agreements  with  two  companies operating in the healthcare
industry,  both  of  which  we  believe  will  be beneficial to enacting our new
business  plan.  The  first  agreement,  dated  June  27,  2002,  is with Camden
Holdings, Inc., a diversified holding company with interests in many industries,
including  the healthcare industry. According to the terms of this agreement, we
are  to  receive a financing of $250,000 in exchange for 1,000,000 shares of our
restricted common stock. Shareholder consent was not required for the agreement.
The  second  agreement, dated June 28, 2002, is an asset purchase agreement with
Genesis  Health  Tech,  Inc.,  a  wholly-owned subsidiary of Camden Holdings. We
intend  to  purchase a comprehensive database of healthcare providers throughout
the  U.S.,  in  exchange for 666,667 shares of our restricted common stock. Both
the  Camden  agreement  and  the Genesis agreement will result in one individual
receiving  24%  interest in our company. This agreement has been approved by the
Board, and a majority of the stockholders have consented to the transaction. The
closing  of  this  transaction remains subject to our compliance with Regulation
14C  of  the  Securities  and  Exchange  Act  of  1934,  as  amended, and NASDAQ
regulations,  including  all  requisite  filings.

     We  also  intend  to  enter into a third agreement with Med Wireless, Inc.,
which  has  developed  a  number  of  wireless  applications  for the healthcare
industry.  These  technologies  are  primarily based on allowing high-resolution

<PAGE>
transfer  of  diagnostic-quality images, including ultrasound, over the Internet
and  intranet  networks.  We intend to license the entire suite of products, and
enter  into  two  distribution  agreements  for  the sale of these products once
licensed.  We  have  received  approval  for  the  general  terms of the license
agreement,  and authorization for the officers to negotiate the final terms of a
license  agreement  with  Med  Wireless, by a majority of the shareholders, such
agreement to be subject to final approval of the terms by the Board. The general
terms  of  the  15-year license agreement provide for the issuance of 33,000,000
shares  of our restricted common stock, which will result in Med Wireless owning
44%  of  our  outstanding  shares  after  giving  effect to the transaction. Two
affiliated  parties,  each  with  minority  interests  in  our company, also own
minority  interests  in  Med  Wireless  either  directly  or indirectly. The two
parties  combined control 52.3% of Med Wireless, although the two parties do not
have  any  oral  or  written  agreement  to act in concert in any respect. After
approval  by  the  Board,  the  closing  of  this transaction will be subject to
compliance  with  Regulation 14C and NASDAQ regulations, including all requisite
filings.

     All  transactions  have  been  and  continue to be conducted at arms-length
terms,  and  all shares received were and will be valued at fair market price as
determined  by  our  trading  price.

     We  intend to divest ourselves of the gaming equipment and cigar industries
when  and  if such opportunities arise which result in a transaction value that
is beneficial to the company and its shareholders.  Any such transaction will be
conducted  at arms-length and for fair value.  We do not currently have any such
transactions  proposed  or  pending.

Results  of  Operations
-----------------------

The  six-month  period  ended  June 30, 2002 as compared to the six-month period
--------------------------------------------------------------------------------
ended  June  30,  2001
----------------------

     Revenues
     --------

     Revenues  from the gaming equipment operations in Peru and Colombia for the
six-month  period  ended  June  30,  2002  decreased by $82,378 or 31%, to
$183,140  from $265,718 for the comparable period in 2001. This decrease was
the  result  of  an  overall weakness of the economy in South America, political
changes and increased competition in the industry.  The company also experienced
the  effects  of  government-mandated obsolescence in Peru, which required us to
retire  523 machines from our inventory. We also significantly reduced marketing
and  advertising expensing, in view of our decision to discontinue operations in
this  business.

     Revenues  from  cigar  sales  for  the  six months ended June 30, 2002 were
$71,775,  a  decrease  of  $25,867  or  36% for the same period in 2001. We also
significantly  reduced  marketing  and  advertising  expensing,  in  view of our
decision  to  discontinue  operations  in  this  business.

     Revenues  from our oil and gas operations for the six months ended June 30,
2002  was  $214,562.  The company did not have any oil and gas activities in the
corresponding  period  in  2001.

     Capital  Expenditures
     ---------------------

     There  were no capital expenditures for the gaming equipment operations for
the  six-month  period  ended  June 30, 2002, which is equivalent to the capital
expenditures  of  the  same  period  ended  2001.

     Capital  expenditures  for  the cigar business were zero for the six months
ended June 30, 2002, as compared to zero for the six months ended June 30, 2001.

     Capital  expenditures  for  the  oil and gas business were zero for the six
months  ended  June  30, 2002, as compared to zero for the six months ended June
30,  2001.

<PAGE>
     Selling,  General  and  Administrative  Expenses
     ------------------------------------------------

     Selling,  general,  and  administrative expenses incurred in the six months
ended  June  30,  2002  decreased  $269,243  or  20%,  to  $1,074,903 from
$1,344,146  for  the same period in 2001. This reduction is due to our reduction
in  marketing  and  advertising  expenses  for  our  cigar  and gaming equipment
industries,  as  well  as  our  10%  reduction in staff in our Miami operations.

     Net  Profit  (Loss)
     -------------------

     Net  loss  for  the six months ended June 30, 2002 was ($1,312,612), as
compared  to  ($1,346,132)  for the comparable period ended 2001, representing a
decrease  of $33,520 in net loss.  This reduction is the result of our reduction
of  costs  in  selling,  general  and  administrative expenses, discussed above.


     The  three-month  period ended June 30, 2002 as compared to the three-month
     ---------------------------------------------------------------------------
period  ended  June  30,  2001
 -----------------------------

     Revenues
     --------

     Revenues  from the gaming equipment operations in Peru and Colombia for the
three-month  period  ended June 30, 2002 decreased by $29,671 or 25%, to $87,712
from  $117,383  for  the  comparable  period  in  2001.  In  addition to overall
economic  weakness in South America, increased competition and forced retirement
of  a  number  of  our  machines, this reduction was the result of significantly
reduced  marketing  and  advertising  expensing,  in  view  of  our  decision to
discontinue  operations  in  this  business.

     Revenues  from  cigar  sales  the  three  months  ended  June 30, 2002 were
$37,859,  a  decrease  of  $12,756  or  34%  for  the same period in 2001.  This
reduction  was the result of our significantly reduced marketing and advertising
expensing,  in  view of our decision to discontinue operations in this business.

     Revenues  from  our  oil and gas operations for the three months ended June
30,  2002  was  $70,740.  The company did not have any oil and gas activities in
the  corresponding  period  in  2001.

     Capital  Expenditures
     ---------------------

     There  were no capital expenditures for the gaming equipment operations for
the  three  month period ended June 30, 2002, which is equivalent to the capital
expenditures  of  the  same  period  ended  2001.

     Capital  expenditures for the cigar business were zero for the three months
ended  June  30,  2002, which is equivalent the capital expenditures of the same
period  ended  2001.

Capital expenditures for the oil and gas business were zero for the three months
ended  June  30,  2002, which is equivalent the capital expenditures of the same
period  ended  2001.

     Selling,  General  and  Administrative  Expenses
     ------------------------------------------------

     Selling,  general, and administrative expenses incurred in the three months
ended  June 30, 2002 decreased $182,192 or 22%, to $642,903 from $825,095 for
the same period in 2001. This reduction is due to our reduction in marketing and
advertising  expenses  for our cigar and gaming equipment industries, as well as
our  10%  reduction  in  staff  in  our  Miami  operations.

     Net  Profit  (Loss)
     -------------------

     Net  loss  for  the  three  months  ended  June 30, 2002 was ($666,814), or
($0.10)  per  share  on  a  fully  diluted  basis, as compared to ($833,410), or
($0.20) per share on a fully diluted basis for the comparable period ended 2001,
representing  a  decrease  of  $166,596,  or $0.10 per share, in net loss.  This
reduction  is  the  result  of  our  reduction  of costs in selling, general and
administrative  expenses,  discussed  above.


<PAGE>

Liquidity  and  Capital  Resources
----------------------------------

     Cash  and cash equivalents decreased approximately $92,899 to $9,725 at
June  30,  2002 from $102,624 at March 31, 2001. The decrease is attributable to
overhead  expenditures  higher  than  operating revenues, and the continued slow
growth  of  the  cigar  operations  and  increase  of  oil  and  gas operations.

     The  company  has  $55,623  outstanding in loans to companies controlled by
related  parties.  Please  refer  to  our  discussion in note 3 to our financial
statements.  The  notes are payable quarterly, and accrue interest at prime plus
1%  (5.75%  at  June  30, 2002).  The company anticipates full repayment of this
loan  by  the  end  of  2002.

     The  company  has  an  outstanding  loan  of $40,000 to Jeffrey Felder, the
current  president  of  our  cigar  subsidiary,  and  formerly an officer of the
company.  The note was payable quarterly, and accrued interest at prime plus 1%,
and  matured  on  October  29,  2001,  the termination date of the officer.  The
company  anticipates  full  repayment  of  this  note  by  the  end  of  2002.

     In  December 2000, the company offered a private placement of $3,500,000 in
principal amount of 6% Convertible Debentures, which are convertible into common
stock  at  an exercise price of $1.75 per share.  These debentures were due June
13,  2001,  and  were  subsequently  extended to December 13, 2001.  $150,000 of
these  debentures  remain  unconverted and outstanding, with accrued interest of
$9,000.  These notes are currently under default, and the company is negotiating
the  terms of settlement with the noteholders. Please refer to our discussion in
note  7  to  our  financial  statements.

Part  II
--------

Defaults  of  Senior  Securities
--------------------------------

     As  of  December  13,  2001,  the  company  has  been  in default on its 6%
convertible  debentures.  The  current  amount  in  default  is  $150,000,  not
including  $9,000  of  accrued  interest due.  Please refer to our discussion in
"Management's  Discussion  and  Analysis - Liquidity and Capital Resources," and
note  7  to  our  financial  statements.

Submission  of  Matters  to  a  Vote  of  Security  Holders
-----------------------------------------------------------

The  agreement with Genesis Health Tech, Inc. was submitted to and approved by a
majority  of the shareholders in final form in a written consent taken without a
meeting,  as permitted by Nuway's By-Laws, on June 28, 2002.  The agreement with
Med  Wireless,  Inc.  has  been  submitted  to and approved by a majority of the
shareholders  in  general  form  on  August  12,  2002.

Exhibits  and  Reports  on  Form  8-K
-------------------------------------

     Exhibits
     --------

3.1     Articles  of  Incorporation  (Delaware),  as  amended  (1)

3.2     Certificate  of  Merger  Merging  Repossession  Auction,  Inc.  (Florida
        corporation)  and  Repossession  Auction,  Inc.  (Delaware
        corporation)(1)

3.3     Bylaws  (1)

3.4     Certificate  of  Amendment  to  Certificate  of  Incorporation  (1)

4.1     Form  of  publicly  traded  Warrant  Agreement  (1)

4.2     Form  of  private  warrant  dated  December  12,  2000  (1)

4.3     Form  of  6%  Convertible  Debenture  dated  December  14,  2000  (1)

4.4     Form  of  Amendment  to  6%  Convertible  Debenture  (1)

4.5     Amendment  to  Publicly  Traded  Warrant  (1)

10.1    Share  Purchase  Agreement  with  Camden  Holdings, dated June 27, 2002


<PAGE>

15.1     Letter  on  unaudited  interim  financial  statements  (2)

99.1     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

________________

(1)     Previously  filed  on Form 10-KSB for the fiscal year ended December 31,
        2001.

(2)     Incorporated  into  financial  statements  filed  herein.


Forms  8-K
----------

Financial  statements  representing  a preliminary balance sheet for the quarter
ended  March  31,  2002 were filed on May 6, 2002 on Form 8-K in compliance with
NASDAQ  requirements.


Signatures
----------

In  accordance with the requirements of the Securities and Exchange Act of 1934,
as  amended,  the  registrant  has  duly  caused this report to be signed on its
behalf  by  the  undersigned  thereunto  duly  authorized.

                                   NuWay  Energy,  Inc.



Date:  August  15,  2002            /s/  Dennis  Calvert
                                   ------------------------------
                                   By:     Dennis  Calvert
                                           President



Date:  August  15,  2002            /s/  Joe  Tawil
                                   ------------------------------
                                    By:     Joe  Tawil
                                    Acting  Chief  Financial  Officer
                                    and  Chief  Accounting  Officer

<PAGE>